The Future of Fundraising

Timothy L. Seiler, Ph.D., CFREDirector, The Fund Raising School

April 23, 2014Indianapolis

2014 The Salvation Army Community Resource

and Development Conference Sessions

If past is prologue …

2012 Contributions: $316.23 billion by source of contributions

(in billions of dollars – all figures are rounded)

2012 Contributions: $316.23 billion by type of recipient organization (in billions of dollars – all figures are rounded)

Total giving:1972-2012(in billions of dollars)

Giving by individuals,1972-2012(in billions of dollars)

Pride

Apology

The Study of High Net Worth Philanthropy

• Commitment to NonprofitsIn 2011, 95% of HNW donors gave to a charity. In 2011, the average amount given by HNW

households was $52,770 (a decrease of 7% from 2009).

• Focus on major giftsDisproportionately high share of all individual

giving in the U.S. comes from HNW individuals • Top 1% gave 37% of all itemized

contribution deductions in 2009. • Top 0.1% gave 18%.

Charitable Giving Forecast for the Next Three to Five Years Among High Net Worth Households

Percentage (%)

Source: 2012 Bank of America Study of High Net Worth Philanthropy

How Decisions About Charitable Giving Were Made in the High Net Worth Household in 2011

Percentage (%)

Source: 2012 Bank of America Study of High Net Worth Philanthropy

The Study of High Net Worth Philanthropy

• Commitment to NonprofitsIn 2011, 95% of HNW donors gave to a charity. In 2011, the average amount given by HNW

households was $52,770 (a decrease of 7% from 2009).

• Focus on major giftsDisproportionately high share of all individual

giving in the U.S. comes from HNW individuals • Top 1% gave 37% of all itemized

contribution deductions in 2009. • Top 0.1% gave 18%.

High Net Worth Donors Reporting Giving Based on Motivation Type in 2011^

Percentage (%)

^Respondents were asked to rank answers from 1 to 5, with 1 being “strongly disagree” and 5 being “strongly agree.” Responses shown here represent those respondents who were collapsed into the agree categories.*2009 and 2011 results are statistically significant (2009 data not included here). Source: 2012 Bank of America Study of High Net Worth Philanthropy

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Old School Fundraising

• Demand Side Philanthropy“scarcity”

• Scolding ModelDuty/Obligation Organization-centered “Needs”-Driven Giving is a contribution Fundraising is just about money

http://www.google.com/url?sa=i&source=images&cd=&cad=rja&docid=pyZN8gsE1LA0YM&tbnid=UQ9gm1zaQiguZM:&ved=0CAUQjRw&url=http://thedailyrecord.com/2011/09/09/real-estate-weekly-9911-new-business-school-building-opens-at-salisbury-university/&ei=0DwKUv2-HMaiyAGH4IHoDA&psig=AFQjCNEOimfh_OjCYvoM0WF3VwBdRMj5hA&ust=1376489023705234

New School Fundraising• Supply Side Philanthropy

“abundance”• Discernment Model

InclinationDonor-centeredValues-drivenGiving is creating changeFundraising nurtures generosity

“Is that idea big enough?”

Jim Hodge

Inspirational Aspirational